Agio is defined as a benefit, commission or profitability obtained with the exchange of currency or the discount of means of payment such as I will pay. In relation to the stock market is the difference between the parity and market value of a security. The word agio actually has several definitions. We have focused … Read more
A means of payment is an instrument that allows you to buy a product, hire services or cancel all kinds of debts. Therefore, we can say that it is a good, such as money, or an instrument, such as a credit card, that allows you to buy something or pay a debt. Money, in fact, … Read more
Cash book or accounting of income and expenses, is the where one made a record of monetary entries and exits, so that a final balance is calculated as the difference between the two. This method is, therefore, a simple entry of each of the accounts, but without counterpart. In this way, it is indicated when … Read more
The types of remittances are the ways in which remittances can be classified according to how they enter a country and its payment process. The channels through which remittances can be transferred are very varied, you can be sent through: Banks Money transfer services Credit associations Hawala Companies Check by mail Friends or family Informal … Read more
What is the usufruct? The usufruct is the real right of enjoyment or enjoyment of a good that does not belong to us, that is, of an alien thing. This translates in legal terms to the possession of the thing, but not to its property. In conclusion, the usufruct is the right to use and … Read more
A put option is a put option. Gives the buyer the right (but not the obligation) to sell an option asset to the seller in the future at a pre-determined price. The owner or buyer of a put option benefits from the option if the underlying asset falls, that is, if when the expiration date … Read more
A treasurer is a corporate position whose main task is the management of monetary funds (money) of an institution and related economic movements. In this way, anyone who is responsible for keeping the accounts of a business, association, club members or similar, is a treasurer. It is perhaps one of the positions of greater responsibility, … Read more
Taxable interest refers to those income associated with an interest charge from positive economic and financial activities for the company. This implies two things, on the one hand, that the interests credited in favour in the accounting books are subject to subsequent taxes. This means that they do not represent a net profit until after … Read more
A remittance in general can be defined as sending money in cash, checks or transfers from one country to another. Also a consignment can be understood as an international transfer of money, because it is sent from one person to another, it is international because to be a remittance the destiny of money must be … Read more
What is Unmarked Money The paper currency which consists of small-denomination banknotes that are ‘non-sequential’ – or ‘random serial numbers’ which can’t be resurfaced in the investigation. In the movies of bank robberies, it is often heard that criminals ask for Unmarked Money or Unmarked Bills. They do it so that the stolen money does … Read more
If your home has a low income, there are resources available to help you meet your basic needs, including housing. Many counties and major cities have a Housing Authority office that helps families and people in need to get in touch with available apartment units, public housing or subsidized housing. Low-income apartments can provide a … Read more
Any construction work that involves emptying or foundation with concrete must be planned or calculated very well. In other words, the volume of concrete that is fair and necessary for the work must be determined. Errors in the calculation of the volume of concrete, entail high costs and loss of time and resources. On the … Read more
Companies regularly grant credit to their customers under the promise of paying the account at a future date. This credit is made through two main ways: accounts receivable and documents receivable. The receivables represent promises of payment from customers on a certain date, which occurs shortly after the purchase have been made, while receivables represent … Read more
A call option is a financial derivative that gives the buyer the right (but not the obligation) to buy an asset from the option seller in the future at a predetermined price. The owner or buyer of a call option benefits from the option if the underlying asset rises, that is, if when the call … Read more
Credit derivatives are bilateral contracts that transfer credit risk between two counterparties. It is basically insurance against the non-payment of a credit (a bond for example), where the protection buyer pays a premium to the seller in exchange for receiving a payment in case of non-payment of that credit. The figure of the “protection buyer” … Read more
A stock index is a benchmark index that is formed with a set of securities listed on a stock exchange. Indices are created with baskets of individual, listed securities, which are called “constituent stocks of the index.” It is very useful to be able to analyze the price variations of several companies at a glance. … Read more
An investment fund or mutual fund is a collective investment institutions (CII) that collects money in the form of contributions to invest jointly. An investment fund, by joining as a single entity, pursues a very simple objective: to achieve a higher return than to invest separately. It should be mentioned that it is generally intended … Read more
A swap is a financial derivative by which two parties agree to exchange, during a specified period, two financial flows (income and payments) of interest in the same currency (interest rate swap) or in a different currency (exchange rate swap). on a certain nominal and specifying an expiration date. Swaps are negotiated bilaterally by each … Read more
A financial asset is a financial instrument that gives its buyer the right to receive future income from the seller. That is, it is a right on the real assets of the issuer and the cash they generate. Unlike tangible assets (a car or a house for example), financial assets do not usually have a … Read more
A warrant is a financial derivative, issued OTC (over the counter), which gives its buyer the right to buy (Warrant call) or sell (Warrant put) a certain financial asset (underlying asset), within a specified period and at a price. previously stipulated (exercise price) in exchange for the payment of a premium. A warrant is very … Read more
It is increasingly fashionable to invest in these types of financial products. We will explain in a simple way and with an example how warrants work. The warrants, is a financial derivative that gives the buyer the right to buy a given financial asset ( underlying asset ) to the issuer of the warrant, a … Read more
Although we could classify warrants as a type of financial option, they have certain characteristics that differentiate them. It is very important to know the differences between the two. To do this, we will see the similarities and differences between warrants and options. Both options and warrants are financial derivatives. The two financial derivatives grant … Read more
A financial option is a financial derivative that involves a contract to buy or sell an underlying asset, which grants the buyer the right to buy or sell the underlying asset agreed in a previously agreed future, depending on whether it is a call option or option selling. The main characteristics of an option are … Read more
In our dictionary we can see what financial options are, and how they differ from warrants. In short, they are a premium paid for the right to secure a future price of another asset ( underlying asset ), either to buy or sell it. In this post we will explain the parts involved, the types … Read more
Financial markets is a space that can be physical or virtual, through which financial assets are exchanged between economic agents and in which the prices of said assets are defined. Financial markets make up a space whose objective is to channel the savings of families and companies to investment. In such a way that people … Read more
A financial future is a financial derivative, characterized by being an agreement whereby two investors agree today to buy or sell an asset (called the underlying asset ) in the future. In the operation the basic conditions of the operation are established, among them fundamentally the price. An investor can be in two positions when … Read more
An underlying asset is that financial asset on which financial contracts fall, that is, the reference value of certain financial derivatives. As we know, in finance there are products such as futures, options, warrants, swaps and other products that are not assets in themselves, but depend on the price, evolution and price of another specific … Read more
A financial derivative is a financial asset whose value is derived from changes in another asset, called the underlying asset. The financial derivative originates from the underlying asset. That is the asset that generates it. For example, the financial future on gold. The financial future is the financial instrument, while gold is the underlying asset. … Read more
A conventional loan is one that has no government ties such as those offered with the support of the Department of Veterans Affairs or the Federal Housing Authority. There are two types of conventional loans that include a secured loan, which means that one has an unsecured collateral loan or signature and one that is … Read more
Companies must produce a series of financial statements to provide information on their activities, net worth and viability. There are three main financial statements maintained by companies and each one plays a different role. Investors, lenders and shareholders are interested in the financial statements, as are the owners and members of the administration. Balance The … Read more